What Is the Value of Green Housing?

Share this Story

(Sept. 25, 2015) — Do energy efficient designations such as Energy Star homes and features such as double-pane windows and low flow toilets increase the value of a home?

According to Thomas Thomson, the Quincy Lee Distinguished Professor in Real Estate and Finance, and Anjelita Cadena, Ph.D. ’13, assistant professor at the University of North Texas, they do.

The researchers studied 66,000 home sales over a five-year period in San Antonio to evaluate the extent green components add a premium to a house’s selling price. They found that green designations increased selling prices by 1 percent, green features such as drought tolerant plants and irrigation systems increased selling prices by 2 percent and energy efficient features such as Energy Star appliances, windows and HVAC systems raised selling prices by 6 percent.

“We are continuing data collection on this project and have two more recent years of data,” said Thomson, whose work appeared in the Appraisal Journal. “We’ll be looking to see if there is an increasing value to green over time, whether green houses sell faster and if the number of green features increases value.”

-----------------------------

Learn more about finance at UTSA.

Connect online with UTSA on Twitter, Facebook, YouTube and Instagram.

 

 

Events



Spotlight

UTSA Bold Promise CTA

UTSA’s Mission

The University of Texas at San Antonio is dedicated to the advancement of knowledge through research and discovery, teaching and learning, community engagement and public service. As an institution of access and excellence, UTSA embraces multicultural traditions and serves as a center for intellectual and creative resources as well as a catalyst for socioeconomic development and the commercialization of intellectual property - for Texas, the nation and the world.

UTSA’s Vision

To be a premier public research university, providing access to educational excellence and preparing citizen leaders for the global environment.

UTSA’s Core Values

We encourage an environment of dialogue and discovery, where integrity, excellence, inclusiveness, respect, collaboration and innovation are fostered.

UTSA’S Destinations

UTSA is a proud Hispanic Serving Institution (HSI) as designated by the U.S. Department of Education .

Our Commitment to Inclusivity

The University of Texas at San Antonio, a Hispanic Serving Institution situated in a global city that has been a crossroads of peoples and cultures for centuries, values diversity and inclusion in all aspects of university life. As an institution expressly founded to advance the education of Mexican Americans and other underserved communities, our university is committed to promoting access for all. UTSA, a premier public research university, fosters academic excellence through a community of dialogue, discovery and innovation that embraces the uniqueness of each voice.